Jejani

This book examines the critical issue of Non-Performing Assets (NPAs) in the Indian banking system and their impact on profitability, stability, and economic development, with special emphasis on public, private, and cooperative banks. It explains the concept, evolution, and classification of NPAs, links asset quality with bank performance, and highlights how rising NPAs erode income, capital adequacy, liquidity, and operational efficiency. The study situates NPAs within the broader framework of banking reforms initiated by the Government of India and the Reserve Bank of India, including prudential norms, supervisory mechanisms, and financial inclusion initiatives. It also analyzes sector-specific challenges faced by cooperative and rural banks, particularly in credit recovery and sustainability. By discussing stressed assets, regulatory changes, and emerging challenges, the book provides an integrated understanding of why effective NPA management is essential for strengthening banks, sustaining financial stability, and supporting inclusive economic growth in India.